Utilisation of input service credit of construction

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mayur ms (Querist)
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22 September 2013 kindly reply that whether cenvat credit of input services (construction service) can be utilised for payment of service tax due for output service, which is also construction service. As per Notfn. No. 3/2011-ST Rule 2(l)of CCR, (zzq), i.e, construction service has been excluded from the definition of input service when it is so far used for construction. confusing over it. kindly answer me...

CA Suresh Jain

CA Suresh Jain (Expert)
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22 September 2013 There is an exception in the exclusion which says "except for the provision of one or more of the specified service" means : if service portion in the execution of a works contract and construction services is used for the provision of one or more of the specified service then the same shall be eligible for input credit.

In this case The service of the sub-contractor is used for providing the construction service and hence eligible for CENVAT credit

disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case

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